RESOURCE ACCOUNTING

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I have one other announcement to make to improve the way in which the taxpayer's money and public sector capital is used and accounted for.

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In my opinion, Government accounting for public spending has become archaic. In my view, the time has come to move to a system of accounting which identifies more clearly the cost of resources. This will put Departments on to a similar accounting basis not only to commercial organisations but to many other parts of the public sector. I shall be publishing a paper in the first half of next year on the introduction of accruals-based resource accounting by Departments, and its implications for the way expenditure is planned and controlled, and money is sought from Parliament.